Navigating Vermont Homestead Declarations
Living in Vermont comes with its own set of responsibilities for property owners, one of which is filing the annual Homestead Declaration by the April 15th deadline. This declaration is crucial for ensuring that you are correctly assessing the homestead tax rate on your property which affects the education property tax you contribute towards the state's schools. Here is the essential information property owners need to know about the Vermont Homestead Declaration.
Understanding Homestead vs. Nonhomestead:
In Vermont, all properties are initially categorized as nonhomestead, and it is the responsibility of the property owner to declare it as a homestead. A homestead is defined as the principal dwelling and its surrounding land owned and occupied by the resident as their domicile. The education property tax rates vary between nonhomestead and homestead properties, emphasizing the importance of correct classification.
Filing the Homestead Declaration:
To file the Homestead Declaration, property owners can choose between online and paper filing options. The myVTax online platform offers a convenient and secure way to file returns. Alternatively, paper forms, specifically Form HS-122, can be used for filing. It's crucial to meet the April filing deadline, even if an extension is granted for the Vermont income tax return.
Required Information for Filing:
Property owners need to gather specific information, including their Social Security Number and the Vermont school district code where the property is located. Find your school district code here: https://tax.vermont.gov/forms-and-publications/school-codes.
Withdrawing a Homestead Declaration:
Sometimes, situations arise where a filed Homestead Declaration needs to be withdrawn. Common reasons include changes in property ownership, conversion to nonhomestead status, filing errors, or leasing the property to a tenant for an extended period. The withdrawal process involves using Form HS-122W, Vermont Homestead Declaration and/or Property Tax Credit Withdrawal.
Navigating the Vermont Homestead Declaration process is vital for property owners to ensure accurate taxation and contribute to the state's education system. For further questions or access to forms and the myVTax portal, property owners are encouraged to visit the official Vermont Department of Taxes website at https://tax.vermont.gov/property-owners/homestead-declaration.